Title 4 Law Book - Arizona Department of Liquor Licenses and Control

2. The place of business for which issued.
3. The purpose for WHICH the liquors may be manufactured or sold.
C. A spirituous liquor license issued to a bar, a liquor store or a beer and wine bar shall be transferable as
to any permitted location within the same county, provided such transfer meets the requirements of an original
application. Such spirituous liquor license may be transferred to a person qualified to be a licensee, provided such
transfer is pursuant to either judicial decree, nonjudicial foreclosure of a legal or equitable lien, INCLUDING
SECURITY INTERESTS HELD BY FINANCIAL INSTITUTIONS PURSUANT TO SECTION 4-205.05 1 , a
sale of the license, a bona fide sale of the entire business and stock in trade, or such other bona fide transactions as
may be provided for by rule. Any change in ownership of the business of a licensee, directly or indirectly, as
defined by rule is deemed a transfer.
D. All applications for a new license pursuant to section 4-201 or for a transfer to a new location pursuant
to subsection C of this section shall be filed with and determined by the director, except when the governing body of
the city or town or the board of supervisors receiving such application pursuant to section 4-201 orders disapproval
of such application or makes no recommendation or when the director, the state liquor board or any aggrieved party
requests a hearing. Such application shall then be presented to the state liquor board, and the new license or transfer
shall not become effective unless approved by the state liquor board.
E. A person who assigns, surrenders, transfers or sells control of a LIQUOR LICENSE OR business
which has a spirituous liquor license shall notify the director within thirty business days after the assignment,
surrender, transfer or sale. No spirituous liquor license shall be leased or subleased. A concession agreement
entered into under section 4-205.03 is not considered a lease or sublease in violation of this section.
F. If a person other than those persons originally licensed acquires control over a license or licensee, the
person shall file notice of the acquisition with the director within thirty business days after such acquisition of
control and a list of officers, directors or other controlling persons on a form prescribed by the director. All officers,
directors or other controlling persons shall meet the qualifications for licensure as prescribed by this title. On
request, the director shall conduct a preinvestigation before the assignment, sale or transfer of control of a license or
licensee, the reasonable costs of which, not to exceed one thousand dollars, shall be borne by the applicant. The
preinvestigation shall determine whether the qualifications for licensure as prescribed by this title are met. On
receipt of notice of an acquisition of control or request of a preinvestigation, the director shall forward the notice
within fifteen days to the local governing body of the city or town, if the licensed premises is in an incorporated
area, or the county, if the licensed premises is in an unincorporated area. The local governing body of the city, town
or county may protest the acquisition of control within sixty days based on the capability, reliability and
qualification of the person acquiring control. If the director does not receive any protests, the director may protest
the acquisition of control or approve the acquisition of control based on the capability, reliability and qualification of
the person acquiring control. Any protest shall be set for a hearing before the board. Any transfer shall be approved
or disapproved within one hundred five days of the filing of the notice of acquisition of control. The person who has
acquired control of a license or licensee has the burden of an original application at the hearing, and the board shall
make its determination pursuant to section 4-202 and this section with respect to capability, reliability and
qualification.
G. A licensee who holds a license in nonuse status for more than five months shall be required to pay a one
hundred dollar surcharge for each month thereafter. The surcharge shall be paid at the time the license is returned to
active status. A license automatically reverts to the state after being held in continuous nonuse in excess of
thirty-six months. The director may waive the surcharge and may extend the time period provided in this subsection
for good cause. A license shall not be deemed to have gone into active status if the license is transferred to a
location that at the time of or immediately before the transfer had an active license of the same type, unless the
licenses are under common ownership or control.
H. A restructuring of a licensee's business is an acquisition of control pursuant to subsection F of this
section and is a transfer of a spirituous liquor license and not the issuance of a new spirituous liquor license if both
of the following apply:
1. All of the controlling persons of the licensee and the new business entity are identical.
2. There is no change in control or beneficial ownership.
I. If subsection H of this section applies, the licensee's history of violations of this title is the history of the
new business entity. The director may prescribe a form and shall require the applicant to provide the necessary
information to ensure compliance with this subsection and subsections F and G of this section.
1 Due to a “manifest clerical error,” the HB2606 incorrectly stated 4-205.05 as 4-204.
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June 8, 2012